Rising house prices narrow the North-South gap

House prices in England and Wales have risen, narrowing the traditional North-South gap, according to new figures.

Data from Garrington Property Finders reveals a new set of hotspots in its Best Places to Live index, with average property prices rising 1.4% in England and 1.5% in Wales.

The firm says the Bank of England base rate at 3.75% has made mortgages more affordable.

North saw strong house price growth

The findings reveal the North saw particularly strong growth, with prices in North East England rising sharply by 5%, and a 3.1% increase recorded in both the North West and Yorkshire and the Humber. In contrast, London saw a decline, with prices falling by 2.4%.

The narrowing of the North-South gap was reflected in the ranking of Marple, Greater Manchester, which was named the best place to live in England and Wales in 2026, with house prices up 7.6%.

Following Marple were Rawdon in West Yorkshire and St Albans in Hertfordshire, where property prices rose by 3.2%.

Mortgages have become more affordable

Jonathan Hopper, CEO of the buying agents Garrington Property Finders, said: “The property maps of England and Wales were redrawn in 2025 as prices headed in opposite directions in different parts of the country. The north-south divide narrowed slightly as prices rose steadily in more affordable northern areas, and fell in the most expensive parts of London and the south.

“The big falls in prime central London values made headlines, but our analysis has revealed many other highly desirable areas across England and Wales where homes have become more affordable over the past year.

“The price of a typical family home rose in 16 of the top 20 locations in our 2026 ranking, but all offer a strong combination of excellent amenities, a high quality of life and good value for money compared to their regional market.”

He adds: “Many buyers paused their moving plans in the latter part of 2025, but our team of experts across England and Wales is now seeing a surge in interest from people ready to make a move in 2026.

“With the Bank of England base rate back below 4%, mortgages have become more affordable and this gives would-be buyers greater freedom to pick a property that’s perfect for them.”